Fairfield Now Doing Business in CA and OK...

Fairfield Now Doing Business in CA and OK...

Dear altFUNDING List Member,

It's been a busy season here at Fairfield, and to be honest we've been too busy making loans to have much time to write about making them. Nevertheless, there has been one very significant development worthy of mention over the last few months: Fairfield Financial is now making private money loans in California and Oklahoma! We have been coordinating private money loans in the Pacific Northwest (specifically Oregon and Washington) since 1964; in 2000 we added Idaho, Colorado, Montana, Wyoming and Alaska to the list of states in which we do business. And now California and Oklahoma are inlcuded as well.

We feel that private money is an important alternative for many who own, buy, and invest in property and real estate projects. Our mission is to offer a full range of private money options to our clients--both borrowers and investors--and to do so in a sincere and professional manner. We believe that good business is about building relationships. We look forward to building many such relationships with our new clients in California and Oklahoma.

Private money is generally used as a bridge: a way to get from (conventional funding) point A to (conventional funding) point B; in other words, it is a short- to medium-term solution (1-6 years), and there is nearly always an exit strategy going in. While private money is very expensive relative to conventional financing, there are many reasons why a borrower would choose to use private money over a cheaper institutional option. First, we here at Fairfield have a remarkable amount of flexibility concerning property type and condition: commercial, retail, restaurants, hotels/motels, marinas, elder care facilities, industrial, agricultural, raw land, land development, construction, rehab, multi-family, single family homes, manufactured homes, floating homes, etc... As long the equity is demonstrably there, we can generally pursue a project. Second, professional real estate investors like to use private money when buying because they are able to make offers which are not constrained by long timelines and numerous rigid conditions. Often times speed is a significant factor in completing a profitable transaction, and in those cases it often makes sense to pay for a short-term private money option rather than loose the deal. Cash leverage is another factor. Fairfield, for example, loans based on the true value of a property, not the purchase price, so sometimes we lend 100% of the total acquisition cost for a property. The structure of the deal may be a factor: most private money lenders allow the buyer to establish their equity through the mechanism of a seller carry back; banks won't do this. The list goes on and on...

For more information on our programs and guidelines, you can always check out our site at http://www.privatemoneysource.com.

Happy holidays and best wishes for a new year,

Clay Sparkman Fairfield Financial Services, Inc.